Download Presentation

The Capital Markets & Careers in Investment Banking

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

Valuation in Practice

Capital Structuring Alternatives

A company has two primary options for financing its operations and strategic initiatives: (1) internally generated cash flow , and (ii) external capital provided by outside investors. The following generalizes the sources of outside capital available:

Our job as investment bankers is to provide options for clients that maximize returns to existing shareholders, while minimizing risk (by providing for optimal financial flexibility)

Equity

FinancialFlexibility

High

Common Stock

Mezzanine

Preferred Stock

Debt

Subordinated Debt

Term B

Revolver / TLA

EconomicCost

Low

Low

High

V. The Current Market Environment

The Capital Markets & Careers in Investment Banking

The Current Market Environment

Capital Markets Back to Pre-Crisis Levels

Sources: Capital IQ

The Capital Markets & Careers in Investment Banking

The Current Market Environment

M&A Market Showing Signs of Strength

Sources: Capital IQ

VI. Career Considerations

The Capital Markets & Careers in Investment Banking

Career Considerations

Current Trends Impacting Employment

The financial markets are hot, but the economy is still recovering

Credit markets and equity markets are liquid, driving new debt and equity issuances